Minnesota Report
Unless something seismic occurs—a shift so profound that we couldn’t have foreseen it in January—the conclusion of this legislative session is fast becoming inevitable. As we predicted months ago, the absence of clearly defined rules for Conference Committees, coupled with the intransigence of House Republicans who have, for all intents and purposes, refused to acknowledge the need to compromise, leaves Minnesota’s legislature at a standstill. Unless House Republicans are willing to set aside their rigid positions and cooperate with the DFL Senate leadership and Governor Tim Walz (DFL-MN) to secure the necessary votes, we are staring down the barrel of gridlock.
The root of this deadlock is clear: Republicans, steadfast in their anti-government ideology, seem unwilling to engage with the reality that without federal support—accounting for roughly one-third of the state budget—Minnesota faces a fiscal chasm. The withdrawal of these critical funds will leave a substantial hole in the budget, one that we know cannot be filled by cutting essential services or hoping for federal rescue.
There will not be a Bonding Bill, because of the inane Republican mindset this is short-term money. Just as the misguided statement the DFL spent $18 billion in the last legislative session when $12 billion of it was Federal money.
The only practical solution to raise the revenue required to maintain a functioning state government is found in two key areas: Sports Gambling and the establishment of a Casino in downtown Minneapolis. Both of these revenue-generating initiatives, which would direct a significant portion of the proceeds to the state, have been floating around political circles for years, yet still lack the traction they need to move forward. Mark Dayton, before he was elected Governor, first proposed the idea of a casino in the heart of Minnesota’s largest city, yet it remains a distant vision for the state’s future.
Additionally, a well-calibrated increase in taxes on higher incomes and property values is an absolute necessity. This would provide a cushion for the inevitable financial shortfall that we can already see on the horizon. In a time when revenues are falling short, we must accept that tax hikes on those most able to contribute will be the only lifeline available.
To add another layer of complexity, we must consider the longer-term impacts of federal policies. The idiotic and reckless approach of Donald J. Trump (R), with his relentless efforts to dismantle the federal government, has left our country in a precarious position. The damage is profound, and repairing it will take at least six years once his influence has waned—assuming, of course, that the country survives this turbulent period without descending into a third-world nightmare or collapsing entirely.
So as we move toward the inevitable conclusion of this session, we ask: will Minnesota’s legislators wake up to the fiscal realities at hand, or will they continue to allow ideology to stifle pragmatic solutions? Time is running out, and the moment for action is fast approaching. The end of this session—and the state’s future—will depend on decisions made in the coming days. The question is: will anyone be brave enough to make them?